Japan April manufacturing PMI 55.1 vs 51.6 in March, best since January 2022.
Japan April manufacturing PMI 55.1 vs 51.6 in March, best since January 2022. Output fastest since Feb 2014 but driven by stockpiling.
Supply delays worst in 15 years. Input costs at 3.5-year high. Business confidence near 5-year low.
Summary: The S&P Global Japan Manufacturing PMI rose to 55.1 in April from 51.6 in March, its strongest reading since January 2022 and signalling the best improvement in sector conditions in over four years Manufacturing output expanded at its fastest pace since February 2014, with all three monitored sub-sectors recording improvement, led by intermediate goods producers New orders grew at their quickest pace since January 2022, but anecdotal evidence pointed to customer stockpiling driven by concerns over future supply chain delays and price increases from the Middle East conflict, rather than a broad-based improvement in end demand AI-related technology demand was also cited as a supporting factor for new order growth Supplier delivery times lengthened at the steepest rate in 15 years, matching the disruption seen in the immediate aftermath of the 2011 Tohoku earthquake, with the PMI calculation mechanically boosted by this deterioration as longer lead times are inverted in the index Stocks of purchases rose for the first time in ten months, driven by deliberate safety stock accumulation, though the rate of growth was only marginal given widespread supply delays Input cost inflation surged to a three-and-a-half-year high, the strongest since October 2022, with higher prices for raw materials, oil and transport cited by survey respondents; output price inflation was also the fastest since late 2022 Employment grew at the second-fastest rate since January 2022 as firms expanded capacity to meet rising demand, while backlogs of work rose at the quickest pace since February 2014 Business confidence in the one-year outlook slipped to its second-lowest level since June 2020, with Middle East uncertainty and its potential impact on…